5 Financial Ingredients for 2016

Make Money, Loosen Up

MOST of the very wealthy and successful entrepreneurs in the world list freedom on the top of the things they enjoy. As matter of facts, they talk less about money. Question is why? You got it right: They got tons of it. And whatever this money can buy is what comes over the top of their minds. I call it loosening up: being free from restraint; getting rid of debt; having access to more options to choose from, simply because money is no longer an issue. Money is now a tool.

With this 2016 coming, you can add some ingredients into your financial diet to grow your tool box. Below are mine, feel free to copy-cut.

1 – Get a library card

The wealthiest people in the world have this following habit in common. They are avid readers. They are savvy investors. Most of all they invest in themselves. This is the best investment you can ever do. By reading, you are exactly doing that. A library card symbolizes a membership to the book club.

2 – Cut out 10%

Even the most frugal people can find some unnecessary 10% of their monthly expenses to cut. Save it, invest it or use it toward your debt payment. You will be better off all together.

3 – Add another income stream

Wealthy people just don’t rely on one income stream. They have numerous sources in addition to their say 9-5 corporate or government jobs. Buy some dividends paying stocks, bonds, some investment properties. Join forces with your trusted colleagues, pool some mutual funds together and invest in a-for the lack of a term- sexier income streaming asset.

4 – Focus on a residual income

This is also called a recurring income. It continues to be generated after the initial effort has been expended. With only 24 hours limited in a day, it’s hard to build wealth quickly when you are trading your time for money. Put your side money to work. Let the money make money, get paid over and over again for your active and passive work.

5 – Track your progress

How much you make and how much you spend matters less. Worry about how much you keep.